How do you remove the background of an inserted image?

Select the image and, on the Picture Tools Format tab, use the Compress Picture feature.
Select the image and, on the Design tab, use the Format Background feature.
On the Drawing Tools Format tab, select Graphics Fill > Remove Background.
Select the image and, on the Picture Tools Format tab, click the Remove Background button.

The correct answer is:

Select the image and, on the Picture Tools Format tab, click the Remove Background button.